EDEN INNOVATIONS LTD — AGM Information 2009

Nov 19, 2009

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Presentation to 2009 Annual General Meeting

20 November 2009

Greg Solomon Chairman

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Disclaimer – Forward-looking Statements and Projections

Whilst reasonable care has been taken in compiling the forward projections in this presentation, they necessarily are based on many assumptions and factors that are beyond the control of the company and accordingly there is no representation or warranty given that these projections will be achieved. There are many uncertain risk factors, particularly related to the Indian market, which are beyond the control of the company and which could significantly impact on both the prices that are achieved , the sales turnover and the production and operating costs. These risks include delays in the rollout of the Natural Gas pipeline system and the accessibility of Natural Gas in India, limitations in the available quantities of Natural Gas, increases in the price of Natural Gas, reduction in the price of alternate fuels such as diesel, changes in Indian Government or Indian Supreme Court policies and rulings , market competition , shortages in raw materials and labour, increases in cost of labour and materials, national or international political or economic instability, problems with reliability of equipment produced and sold, warranty claims, currency fluctuations, restrictions on foreign investment, disputes with potential joint venturers, market resistance to the products or services offered, lack of available capital or finance, restrictions on international travel and similar factors beyond the control of the company. For these reasons, all potential investors and others must satisfy themselves on the reliability of these forward looking projections before acting upon any information provided to them in relation to forward looking projections, and neither the company nor any of its officers make any representations, warranties or commitments that these or any other forward projections will necessarily be achieved.

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Overview

� Corporate Objectives

• to and market clean with a focus on develop globally energy technologies promotion of hydrogen

• to promote the company’s various energy production assets as separate

• entities/ vehicles in which Eden will remain as a significant shareholder

• Existing Clean Energy Products and Technologies

• Hythane® - a premium blend of natural gas with 7% (by energy) hydrogen

• OptiBlend -dual fuel kit for engines using diesel and natural gas or Hythane®

• Hydrogen fueled internal combustion engine

• Production of hydrogen and carbon fibres from methane without CO2

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Corporate Structure

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Eden Energy Ltd
CORPORATE
(AUSTRALIA)
Eden Innovations Ltd
HOLDING Energy Assets
(Ireland)
Terratherma
Hythane Eden Energy Coal Bed/Seam Natural Gas
Company LLC India Pvt Ltd Methane South Australia (Geothermal)
South Australia
OPERATIONAL (USA) (India) (Wales, UK) (AUS)
(AUS)
(to be sold or joint (to be sold or joint (to be sold or joint
ventured) ventured) ventured)
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Existing Clean Energy Products

Hythane® - a high efficiency, ultra-low emission, premium blend of natural gas containing 7% hydrogen (by energy)

• products include blenders for mixing the gas, designing and building the refueling stations, engine calibrations

OptiBlend® Dual Fuel - a proprietary dual fuel system to operate diesel engines on a mixture of up to 70% natural gas/ propane and 30% of the diesel

Hydrogen IC Engine - a US patented, ultra-high efficiency, ultra-low emission internal combustion engine

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Emerging Clean Energy Products

Hydrogen and Solid Carbon /Nantotubes Production without CO2

• a Joint Venture with University of Queensland (Eden-50%)

• a new agreement with a major third party to fund the up-scaling to prototype is being negotiated

OptiBlend® Dual Fuel Kit Improvements

• improved design to economise dual fuel kit is being developed

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Markets for Existing Product Range

Hythane® and OptiBlend® Dual Fuel

Current Markets India ,USA

Possible Mid-Term Future Markets China, Malaysia, Bangladesh, Australia, Singapore, Middle East, South America

Hydrogen Internal Combustion Engine

Possible Mid-Term Future Markets

India, China, USA

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Major Drivers for Hydrogen Markets

� [Environmental ]

• Local air pollution

• Concern for global climate change

• [Economic ]

• Comparative fuel prices

• Comparative efficiency of application

• Public health costs

• Carbon trading

• [Energy independence ][-][Push to end dependence on oil and develop green alternatives]

• [Renewable energy] - Need to develop renewable energy with H2 as energy carrier

• [Political ][- Progressive leadership or younger voter pressure]

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Hydrogen Infrastructure

� Fundamental Dilemma

• How to fund hydrogen infrastructure before hydrogen fleets exist?

• How does a hydrogen fleet develop without available infrastructure?

� The Solution - Hythane®

• existing natural gas fleet uses the new hydrogen infrastructure

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Hythane ® - the transitional fuel H � 2 + CH4 Significantly lower pollution / Higher efficiency Hythane

• Low-cost, premium blend of Hydrogen and Natural Gas :

• 5-7% H 2 (by energy); 20% H2 (by volume)

• Ultra-low emissions – 50% Nox /CO - meets 2010 Indian emission standards

• High efficiency - 10-15% increase in efficiency with suitable engines

• Low cost-only software changes to suitable engines

• Anticipated cost ≈ 10% more than natural gas

• Complies with existing natural gas safety standards

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The Hythane® Process

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Reformer
Natural Gas
Pipeline CH4
H2
Compressor Hythane ®
Blender
Storage Tanks
Low pressure Blending Option Shown
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Storage Volume Comparison

CNG, 300 km H2,<70 km in same tank

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H2, 300 km 4.5 times more volume

Hythane, 300 km 1.2 times more volume

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Hythane®- the leveraged use of Hydrogen

Case 1: Convert 7 CNG Vehicles to Hydrogen

Hydrogen Vehicle CNG Vehicle Hythane Vehicle

Result: 7% NOx reduction, 7% hydrogen energy

Case 2: Convert 100 CNG Vehicles to Hythane[]

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Result: 50% NOx reduction, 7% hydrogen energy

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Denver Hythane® Emissions Results
3
2.5
2
1.5
1
0.5
0
NG HY NG HY NG HY
THC CO NO
x
ONS, GRAMS/MI.
HOT 505 EMISSI
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Output of pollutants (grams per mile) of Natural Gas versus Hythane®. Source: Colorado Department of Health

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Hythane® Bus Projects

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Montreal 1993-1995
California 2002-2004
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Existing Natural Gas Markets Support Hythane®

• Hythane® complies with existing natural gas safety regulations

• CNG no longer experimental - over 3 million vehicles globally

• E x s i ti ng CNG/LCNG ve hi c es can eas l il y e conver b t e d t o opera t e on y H th ane

• Hythane can be deployed at existing CNG and LCNG stations

• Natural gas reformers and Hythane blending equipment is available

• Customer base already accustomed to using a gaseous fuel

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Eden in India

WHY INDIA WILL ADOPT HYTHANE®

• Extreme urban air pollution -Indian Supreme Court identified 20 cities for natural gas

• Government support - funded First Public Hythane® station – Delhi 2009

• The 2006 Indian hydrogen roadmap proposes Hythane® as transitional fuel

• Natural Gas is far cheaper (per GGE) than diesel (up to 60% cheaper)

• Increasing supply of natural gas – 5Mtpa to 25Mtpa over 5 years, starting April 2009

• National rollout of natural gas pipelines

• City Gas distribution networks in 8 cities increasing to 28 medium term and 300 longer term

• 5 new City Gas licences issued in April 2009

• 2008 India adopts Hythane® as Natural Gas- regulations planned for August 2009

• Natural gas already a major vehicle fuel – GAIL plans 2000 further gas stations

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First Public Indian Hythane® Station

Delhi January 2009

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INDIAN GAS SUPPLY

Courtesy of Gas Authority of India

TURKMENISTAN

Domestic Gas

• Eastern Cost

• Upcoming LNG Terminals • Dhabol (5 MMTPA) • Kochi (2.5 MMTPA)

Existing LNG Terminals

• Dahej (5 to 10 MMTPA)

• Hazira (2.5 MMTPA)

Cross Border Pipelines

• Iran-Pakistan-India

• TurkmenistanAfghanistan-PakistanIndia

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DAHEJ I & II
10 MMTPA
IRAN
HAZIRA
2 5MMTPA.
DAHEJ
HAZIRA
DABHOL
DABHOL
5 MMTPA
NEW GAS DISCOVERIES
LNG TERM’s- Upcoming
KOCHI LG TERM’s- Existing
5 MMTPA
KOCHI TRANS – NATIONAL P/L
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INDIAN GAS INFRASTRUCTURE
CURRENT & FUTURE
NANGAL
BHATINDA
DELHI
BAREILLY
GURGAUN
MATHANIA AGRA AURAIYA LUCKNOW DISPUR
JAGDISHPUR
DAHEJ I & II BARMER GWALIOR KANPUR PATNA Courtesy of Gas Authority of India
10 mmtpa PHOOLPUR
KOTA JHANSI VARANASI GAYA AGARTALA LNG
UJJAIN VIJAYPUR
RAJKOT BOKARO
BHOPAL Existing
AHMEDABAD
KOLKATA
HAZIRA BHARUCH BARODA CUTTACK Upcoming
2.5 mmtpa SURAT DAMRA
BHUBANESHWAR Transmission Pipelines
MUMBAI PUNE
Existing
RAJAMUNDRY KRISHNAPATNAM
DABHOL SOLAPUR KAKINADA GAIL’s Planned Pipeline
5 mmtpa KOLHAPUR HYDERABAD RIL’s East West Pipeline
VIJAYAWADA RIL’s Planned Pipeline
GOA
NELLORE GSPC’s Planned Pipeline
ENNORE
BANGLORE
HASAN City Gas/ CNG
MANGALORE CHENNAI 2.5 mmtpa
MANGLORE Existing
2.5 mmtpa
Planned
KANJIKKOD TIRUCHCHIRAPALLI LNG Terminal
KOCHI
COIMBTORE
5 mmtpa
TUTICORIN
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INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
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GAIL CITY GAS / CNG
•
Growth From Existing CHANDIGARH
LUDHIANA
PANIPAT
Cities to 28 Cities AMRITSAR
GURGAON
DELHI
FARIDABAD NOIDA BAREILLY
GHAZIABAD
JAIPUR
• JODHPUR MATHURA LUCKNOW SILCHAR
More Cities as Pipelines UDAIPUR NEEMRANA-AGRAKANPUR VARANASI
BHIWADI ALLAHABAD PATNA
Reach New Areas KOTA GWALIOR PHOOLPUR JHARIA
JHANSI
AGARTALA
UJJAIN
• RAJKOT
INDORE
Target - 230 Cities AHMEDABAD KOLKOTA
SURENDRANAGAR
(Longer Term) VADODRA
MUMBAI THANE
VIJAYWADA
NAVI MUMBAI
PUNE
SHOLAPUR
HYDERABAD RAJMUNDARY
BANGALORE
City Gas/ CNG
Existing (8 cities)
Courtesy of Gas Authority of India Planned (28 Cities)
CHENNAI
November 09 KOCHI 21
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OptiBlend System Description

• Applicable to a wide range of diesel engine applications

• Displaces over 70% of diesel fuel with natural gas in diesel generators

• Numerous sensors feedback to PLC

• Allow maximum diesel displacement

• Maintain superior engine protection

• Payback period of less than 1 year for larger generators

• First three Indian sales installed – up to 70% diesel displacement achieved

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OptiBlend Market Drivers

• Huge cost savings

• Dramatic cost savings in full and part time applications

• Payback period less than 12 months for larger gensets

• Em ss on re i i d uct on i

• Over 60% NOx reduction

• Up to 10% reduction in CO2

• Over 60% increase in backup power capacity

• Reduction of dependence on diesel deliveries

• Reduction of diesel tank maintenance for standby applications

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OptiBlend-Typical Power Production Costs

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Assumptions: Diesel = $1.25/liter, Natural Gas = $10 mmbtu, Cummins K19 Genset

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OptiBlend-Typical NOx Production

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Assumptions: Diesel = $1.25/liter, Natural Gas = $10 mmbtu, Cummins K19 Genset

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Major System Components

Gas Train Knock Detector Mixer PLC Vibration Sensor

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Advantages of OptiBlend

� No internal engine modifications

� No OEM control system modifications

• Maintains OEM power output

• Optimizes displacement at all loads - <70% natural gas achieved

• Capable of multiple alternative fuels

• Methane, Propane

• Methane and Hydrogen

• Reverts to 100% diesel if alternative fuel supply fails

• � Payback period of less than 1 year for larger gensets

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Eden in India Target Hythane® and Dual Fuel Timetable

• Timeline Anticipated Action 2009-2010 � First Public Hythane Station opens- built by Hythane Co � First L&T manufactured hydrogen reformer completed

• � Finalise Government re ulations for vehicles and stations. g

• � Demonstration Hythane bus projects – Gujarat and Mumbai

• � Demonstration dual fuel kit projects – Assam, Mumbai, Gujarat

• � Start commercial rollout of OptiBlend Dual Fuel kits.

• 2011 – 2013 � Start commercial rollout of Hythane buses. � Ramp-up to commercial rollout of OptiBlend Dual Fuel gensets

• � Demonstrations on Hythane/ Dual Fuel locomotives

• �

• 2013 & Beyond Full commercial rollout of Hythane for all vehicles, gensets and locomotives

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Production of H2 and Carbon Nanotubes from CH4

• New process developed in JV with UQ

• Patent applications lodged

• No CO2 – H2 becomes a very high value byproduct

• Produces hydrogen and single and multi-walled carbon

• nanotubes and carbon fibres

• tensile strength up to 200-300 times steel

• approx 17% the weight of steel

• great electrical / structural qualities

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• potential replacement for steel/aluminium in vehicles, aircraft and many other applications

• Joint venture with Indian major under negotiation

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Energy Assets

COAL SEAM METHANE/ CONVENTIONAL GAS (WALES, UK)

• Eden Energy Limited - 50% Joint venture ( with Coastal Oil and Gas) -11 Licences

  • 5% Joint venture ( with Coastal Oil and Gas / Centrica)- 4 CSM licences

  • 50% Joint venture/Farm-in ( with Coastal Oil and Gas ) -4 NG Licences

• 18 Petroleum Exploration and Development Blocks in Wales, SW England and Kent

• Targets - Coal Seam Methane

• Abandoned Mine Methane

• Conventional Natural Gas

• Shale Gas

• Total area 1800km[2]

• Digitised Welsh coal mine data

• High UK Gas Prices

• New listed company planned

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Energy Assets

S WALES COAL SEAM METHANE (CSM) JV - 4 PEDLS

JV with Centrica / Coastal Oil and Gas

Eden- 5% interest( in CSM)

• –

• First CSM well good gas content and permeability , average gas compositions, gas content increasing steadily with depth from 1m[3] /tonne to >9m[3] /t

• Second CSM well – completed, permeability testing May-08, up to 18 seams, each up to 4m thick, well completion at 810m, initial in situ gas contents up to 11.4m[3] /t (dry and ash-free), average of 8.4m[3] /t

• Third CSM well – incomplete result following unexpected upthrust basement

• Farm-In obligations complete on PEDL 100, 148 and 149 for CSM

• PEDL 100 - Preliminary resource- 380- 670Ptj ( approx 380- 670 Bcf)

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Energy Assets

NATURAL GAS (SOUTH AUSTRALIA)

Location: Proximal to Olympic Dam mining

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Seismic

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• Drill target identified

• Intention to combine with CSM in new gas company- discussions commenced

• Higher risk ( Proterozoic age), but very close to huge industrial gas market (Olympic Dam)

• Drilling planned within 18 months

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Energy Assets

GEOTHERMAL- SOUTH AUSTRALIA

• 4 project areas, 15 licences/ applications

• GEL 185-adjacent to Geodynamics

• GEL 185- JV with Origin Energy- $1m + $500k expenditure for 70%.

• Planned float of Terratherma on the ASX

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Greg Solomon Executive Chairman Level 40, Exchange Plaza, 2 The Esplanade, Perth, Western Australia, Australia. 6000 Telephone +618 9282 5889 Mobile +614 0206 0000 Fax +618 9282 5866 Email gsolomon@edenenergy.com.au Website: www.edenenergy.com.au

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